OGOS 2022

Sarawak Taking Concrete Steps To Add Value To Gas Resources: Premier


MIRI, Friday: Sarawak is taking concrete steps to add value to its gas resources instead of merely depending on the export of LNG from Bintulu, the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Haji Zohari bin Tun Datuk Abang Haji Openg said here, today. 

Sarawak would lose in the long run if gas was not diversified into petrochemical products to expand the value chain and generate the economy, he pointed out. 

He said this in his speech while officiating at the symbolic handing over of the letter of award by Shell to Pantai Bayu Indah, a subsidiary of Land Custody and Development Authority ( LCDA) for the construction, fit-out lease of Shell Malaysia’s new Upstream Headquarters at the Times Square, here. 

He expressed gratitude to Shell for relocating its upstream headquarters here which he described as the birthplace of the oil industry in Malaysia and where Shell started in the country.

The Premier said Sarawak Government signed an MOU with Petronas in 2021 for the supply of 1,200 MMscfd of gas for the industries in Bintulu up from the previous 450 MMscfd.

The increase in supply of gas was necessary in order to develop Bintulu into a petrochemical hub and thus moving away from dependence on the export of LNG alone, he told the audience. 

“Just last week I was in Bintulu to officiate at the earth breaking of Petronas’ second facility or BAGSF 2 to supply gas to industries,” he said.

BAGSF 2 (Bintulu Additional Gas Sales Facility 2) scheduled for completion in 2023 with a capacity of supplying 390 MMscfd of gas would supply 160 MMscfd to the first Sarawak-owned Methanol plant and another 70 MMscfd to the Sarawak Energy’s gas-fired power plant in Tg Kidurong, Bintulu.

He said Sarawak through Petros would always welcome collaboration with Petronas in as much as it welcomed cooperation with Shell to develop both the upstream and downstream of the O & G industry in Sarawak. 

Petronas recognised the Sarawak Oil and Mining Ordinance 1958 as a State law and its coexistence with the PDA 1974 which covers the whole country as a federal law, he said.

Elaborating on initiatives towards mitigating carbon emission, he said Sarawak was taking steps to be a player in Carbon Capture Utilisation and Storage (CCUS) and carbon trading. 

“I have sent Deputy Minister of Energy and Environmental Sustainability, Dr. Hasland Hipni to attend a conference in Portugal to study international protocols in carbon trading as we have to comply with international requirements,” he said.

He reiterated that Sarawak being located outside the “ring of fire”  had a stable geological structure favourable for the storage of carbon that could generate income for the State.

He said Sarawak had amended its Land Code and Forest Ordinance to operationalise carbon capture and storage and carbon trading.

Also present were Dato Sri Lee Kim Shin, Minister of Transport, Dr. Hazland Abang Hipni, Deputy Minister of Energy, Environmental Sustainability, Dr. Ripin Lamat Deputy Minister for Youth, Sport and

Entrepreneur Development II (Entrepreneur

Development), members of Parliament and ADUN. 

The Chairman of Shell Malaysia, Ivan Tan spoke earlier.

Sumber dari : Sarawakku